CowSwap <> ShapeShift Integration
GitHub: github. com/willyogo
LinkedIn: linkedin. com/in/willyog
Email: willy@foxfoundation. io
The roadmap for the ShapeShift DAO is ultimately driven by the community of FOX Token holders. Currently the community is aligned on–and rapidly progressing toward–the following mission and vision:
Vision: We envision a borderless financial system built on open, decentralized protocols.
Mission: We shall be the pathway into this borderless financial system; an open-source, multi-chain, self-custody crypto platform enabling billions to achieve financial sovereignty.
An in-progress version of the new ShapeShift is live at app.shapeshift. com. This version is open-source, supports multiple wallets, multiple blockchains (not limited to EVM-compatible networks), and is architected for complete decentralization.
The new ShapeShift, powered by an open-source stack including HDWallet, Unchained, Chain Adapters, Swapper, and Web repositories, will enable completely decentralized access to DeFi protocols across any chain. Additionally, the upcoming FOXChain will provide backend node infrastructure for any interface that wants to be truly decentralized, including ShapeShift’s.
Finally, through integrations with DEX and DEX aggregator protocols such as CowSwap, THORChain, and Osmosis (in-progress), ShapeShift enables users to seamlessly move crypto assets across chains with no KYC, custody, nor added fees. With the understanding that both the decentralized interface and blockchain data infrastructure are imperative to bringing DeFi to the masses, the ShapeShift community is actively coordinating to build this.
- Integrations and protocol order flow
Phase one (complete)
- Integrated CowSwap as the default DEX protocol for Ethereum mainnet for all trades besides unwrapped ETH (we decided to route ETH trades through 0x rather than prompting users to wrap their ETH)
- Updated trading UI to account for differences between CowSwap and 0x’s UX
- Added CowSwap to ShapeShift’s open-source Swapper library, which any app can use to quickly implement support for a growing list of DEX protocols and aggregators, including 0x, CowSwap, THORChain, and Osmosis.
Phase two (in progress)
- Polishing the CowSwap integration to address the issues (github. com/cowprotocol/cowswap/issues/956#issuecomment-1225812939) identified by CowSwap team and add additional functionality supported by the protocol such as custom recipient address
- Announcing and promoting the CowSwap integration (announcement post drafted in english (docs.google. com/document/d/1kqPS1pCOCoxWUkSIjst22Q8Vs9Dt8RCeNShtib9zy64/edit?usp=sharing), portugues (docs.google. com/document/d/1fffQTZa7qQlksn8-3Ghm5Ev-MMV6UzqjEvIw0zHv0ns/edit), spanish (onedrive.live. com/view.aspx?resid=B713543B5EB91EBB!3979&ithint=file%2cdocx&authkey=!AFJdNglwc1ZIs7c), and french (docs.google. com/document/d/1-UQs6RMO8y2ejy69D3pC7huxdPH9EdxYeS_tcC3dmI4/edit?usp=sharing))
- Launching THORChain and Osmosis trading integrations alongside CowSwap and routing all ERC20<>ERC20/ETH swaps on Ethereum mainnet through CowSwap
Phase three (future milestones)
- Route trades from unwrapped ETH to CowSwap once this feature is supported by the protocol
- Integrate CowSwap as the default DEX protocol for Gnosis Chain
- Once CowSwap’s affiliate revenue program is live, reward users who generate COW for the DAO’s Treasury proportionally with FOX Tokens
Grant Goals and impact:
Our goal is to make ShapeShift the best interface to the decentralized universe and to give users around the world access to the best liquidity, protection from MEV, and drive more coincidence-of-wants. Further, our app will provide a free, open-source, community-owned, and soon fully decentralized/unstoppable interface to the CowSwap protocol.
- Phase one (complete)
- Phase two (in progress)
Phase one is complete, and Phase two is estimated to be completed in early November
First milestone: 5k xDAI, 50k COW (done, paid once proposal approved)
Second Milestone: 5k xDAI, 50k COW (will be paid upon completion)
All COW tokens granted will be subject to 12 months of vesting beginning from the moment that a ShapeShift DAO community member reports to the COW Grant committee that the milestone has been achieved.
5M volume: 50k COW
15M volume: 100k COW
100M volume: 200k COW
*Volume milestones must be surpassed by December 31, 2023 to be eligible for grant funding.
The xDAI will reimburse a portion of the funds ShapeShift DAO has already spent and plans to spend to compensate the product, engineering, operations, and marketing contributors responsible for developing, testing, and promoting the integration.
The COW tokens will be held in the DAO’s Treasury to give the DAO exposure to Cow Protocol’s success and to align incentives between foxes and cows. Liquidating these tokens would require passing a formal governance proposal in ShapeShift DAO.
Gnosis Chain Address (to receive the grant):
One of the main challenges that has caused this integration to take longer than anticipated has been handling the nuances between CowSwap and the other DEXs we support or will soon support in the same interface (0x, THORChain, and Osmosis).
As we continue to execute on the other priorities on our roadmap, we expect the volume of trades routed through CowSwap from ShapeShift users to increase significantly.
Huge shoutout to Chen for being an excellent point of contact throughout the integration process and for referring us to the grant committee.
Terms and conditions: